Question
Briefly explain the concept of GST.
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Answer
Goods and Services Tax (GST): It is a tax levied and collected on supply (sale) of goods and/ or services or both. It is charged by the seller on the net sale value, i.e., sale value less trade discount. The seller is bound to charge GST on sale made and deposit it in the Government Account. For the seller of goods, it is not sale because it is collected on behalf of the Government and is to be paid into Government Account.
In the case of intra-state (i.e., within the state) sale of goods, both CGST and SGST is charged at half the prescribed rate of GST. And in the case of inter-state (i.e., outside the state) sale of goods, IGST is charged at the prescribed rate of GST.
CGST and SGST charged on intra-state sale of goods is credited to 'Output CGST Account and Output SGST Account' respectively. IGST charged on inter-state sale of goods is credited to Output IGST Account.
In the case of intra-state (i.e., within the state) sale of goods, both CGST and SGST is charged at half the prescribed rate of GST. And in the case of inter-state (i.e., outside the state) sale of goods, IGST is charged at the prescribed rate of GST.
CGST and SGST charged on intra-state sale of goods is credited to 'Output CGST Account and Output SGST Account' respectively. IGST charged on inter-state sale of goods is credited to Output IGST Account.
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On 1st January, 2019, Ram of Kolkata commenced business with a capital of ₹ 50,000 and entered into following transactions:
Pass the following transactions through proper books to the Ledger. Take out a Trial Balance as on 31st January, 2019. The Cash Book must be balanced.
Transactions marked with (*) are intra-state transactions subject to CGST and SGST @ 6% each.
Transactions marked with (**) are inter-state transactions subject to IGST @ 12%.
Pass the following transactions through proper books to the Ledger. Take out a Trial Balance as on 31st January, 2019. The Cash Book must be balanced.
| 2019 | ₹ | |
| Jan. 1 | Opened a Bank Account and Deposited ........ | 12,500 |
| Purchased Goods against Cash Payment* ........ | 20,000 | |
| Purchased furniture for Shop* ........ | 5,000 | |
| Sold goods to R. Raman, Kolkata* ........ | 5,000 | |
| Jan. 2 | Bought goods from Man Mohan, Delhi** ........ | 10,000 |
| Jan. 3 | Bought stationery and paid by cash ........ | 1,000 |
| Jan. 5 | Received cash from R. Raman ........ | 5,300 |
| Discount allowed to him ........ | 300 | |
| Jan. 6 | Sold goods to Bimal, Kolkata* ........ | 7,500 |
| Jan. 8 | Bimal returned part of the goods supplied on the 6th instant ........ | 1,500 |
| Jan. 10 | Paid cash into bank ........ | 1,000 |
| Jan. 12 | Paid wages ........ | 1,500 |
| Jan. 13 | Bought on credit from the Union Furniture Co., Kolkata office desk* ........ | 1,500 |
| Jan. 19 | Paid wages ........ | 1,500 |
| Jan. 21 | Paid to Man Mohan by cheque ........ | 10,700 |
| Discount received ........ | 500 | |
| Jan. 21 | Sold goods to Ramesh, Guwahati including IGST** ........ | 6,720 |
| Jan. 22 | Received cheque from Bimal ........ | 6,000 |
| Jan. 23 | Bought goods from Man Mohan, Delhi** ........ | 7,000 |
| Jan. 24 | Drew by cheque for personal use ........ | 2,000 |
| Jan. 27 | Paid wages ........ | 1,500 |
| Jan. 31 | Rent due to landlord* ........ | 1,000 |
Transactions marked with (**) are inter-state transactions subject to IGST @ 12%.
Explain any five type of accounting vouchers in Tally.
Tulsi started business on $1^{st}$April, $2016$ with a capital of ₹ 4,50,000. On $31^{st}$ March,$ 2017:$ her position was as under:
She owed ₹ $45,000$ to her friend Parvati on that date. She withdrew ₹ $8,000 $per month for household purposes. Ascertain her profit or loss for the year ended $31^{st}$ March,$ 2017:$
→She owed ₹ $45,000$ to her friend Parvati on that date. She withdrew ₹ $8,000 $per month for household purposes. Ascertain her profit or loss for the year ended $31^{st}$ March,$ 2017:$
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The second bill was retired on 4th May, 2009 under a rebate of 6% p.a. with mutual agreement.
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The second bill was retired on 4th May, 2009 under a rebate of 6% p.a. with mutual agreement.
Journalise the above in the books of Leena and Meena.
Sonam keeps his books on single entry and provides you with the following information:
Prepare Trading and Profit & Loss Account for the year ended 31 December, 2018 after providing for bad debts at 10%.
There was a considerable amount of Cash Sales.
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There was a considerable amount of Cash Sales.
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Ashok keeps incomplete records. The position of his business on $1^{st}$ April, $2016$ was as follows:
Cash in Hand $₹\ 2,200;$ Cash at Bank $₹\ 5,400;$ Stock $₹\ 25,100;$ Sundry Debtors $₹\ 18,700;$ Furniture $₹\ 6,000; $Sundry Creditors ₹\ $13,500$.
His position on $31^{st}$ March, $2017$ was as follows:
Cash in Hand $₹\ 1,500$; Cash at Bank $₹\ 8,400;$ B/R $₹\ 3,300;$ Stock $₹\ 26,000$; Sundry Debtors $₹\ 24,600;$ Furniture $₹\ 8,000;$ Sundry Creditors $₹\ 14,200.$
During the year he had withdrawn from the business $₹\ 18,000,$ of which $₹\ 9,200$ were spent in purchasing a Typewriter for the business.
→Cash in Hand $₹\ 2,200;$ Cash at Bank $₹\ 5,400;$ Stock $₹\ 25,100;$ Sundry Debtors $₹\ 18,700;$ Furniture $₹\ 6,000; $Sundry Creditors ₹\ $13,500$.
His position on $31^{st}$ March, $2017$ was as follows:
Cash in Hand $₹\ 1,500$; Cash at Bank $₹\ 8,400;$ B/R $₹\ 3,300;$ Stock $₹\ 26,000$; Sundry Debtors $₹\ 24,600;$ Furniture $₹\ 8,000;$ Sundry Creditors $₹\ 14,200.$
During the year he had withdrawn from the business $₹\ 18,000,$ of which $₹\ 9,200$ were spent in purchasing a Typewriter for the business.
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- Write off $₹\ 600$ as Bad-Debts.
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